Nearly 35 trillion MNT in income and assets uncovered under economic transparency law

By Ch.KHALIUN

Yesterday, Finance Minister B.Bolor and Head of the Customs and Taxation Department (CTD) S.Purev held a press conference to announce that a total of 34.7 trillion MNT in income and assets became transparent under enforcement of the Law on Economic Transparency, which ended on February 20.
They underlined that 8.3 trillion MNT was exempt from taxes and 2.5 trillion MNT was exempt from fines. Entities have delivered a total of 21,275 financial reports, 89,394 tax reports, 4,165 social insurance reports, and 8,140 customs reimbursement applications. Officials underlined that changes were made to the classification of 647 types of assets and to the registration of 744 entities.
The Ministry of Finance reported that a total of 27,665 entities delivered requests to report finances transparently, and 21,275 report requests were approved by the ministry. A total of 31.5 trillion MNT became transparent under the reports. Around 26.6 billion MNT was exempt from fines, and 8.7 trillion MNT out of 31.5 trillion MNT was net profit.

The CTD received a total of 89,394 reports on 34.2 trillion MNT for five types of taxes, 8.2 trillion MNT of which was tax exempt, and 2.46 trillion MNT exempt from fines. The results did not include excise tax, VAT, or customs taxes.

A total of 1,795 citizens and entities delivered 8,140 general customs reports on approximately 6,500 goods and vehicles valued at 516.1 billion MNT. The CTD waived 79 billion MNT in taxes and 23.7 billion MNT in fines.
A total of 4,165 reports from 16,636 insurers were delivered to the Social Insurance General Office (SIGO). The Law on Economic Transparency did not include a regulation on tax exemption for social insurance contributions, and 15.6 billion MNT related to pensions was generated for the social insurance contribution fund. SIGO waived 7.8 billion MNT in fines.
The National Registration Office reported that a total of 647 types of assets valued at 399.9 billion MNT were registered, and the NRO made 1,176 changes to the registrations of 744 entities and individuals, waiving 428.5 million MNT in fines.
On February 15, Montsame.mn reported that a total of 14.4 trillion MNT in income and assets had become transparent under the enforcement of the transparency law, but according to the Finance Ministry’s report, around 20 trillion MNT had become transparent in five days.
Parliament first approved the implementation of the law from August 7 through December 31, 2015. The law’s initiators predicted that around six to seven trillion MNT would become transparent under the law, but as the implementation of the law exceeded projections for the reporting of income and spending, parliamentarians voted to extend its implementation to February 20, 2016.